Tuesday, 30 June 2009

UPDATE: Italy Econ Min: Tax Breaks For Cos Worth Some EUR4 Billion

UPDATE: Italy Econ Min: Tax Breaks For Cos Worth Some EUR4 Billion
   (Adds comment, background.)


ROME -(Dow Jones)- Italian Economy Minister Giulio Tremonti said Tuesday that tax breaks for companies that reinvest their profits to buy machinery will total about EUR4 billion as part of a stimulus plan aimed at boosting investment and confidence in Italian businesses.

Tremonti, speaking at a press conference in Rome, also said Italian companies and families will save EUR2 billion from lower bank fees.

The stimulus package, which is fully financed, also contains a separate measure to speed up payments the government owes to Italian companies of about EUR5 billion.

The government hasn't yet confirmed how much the total stimulus is worth, but a person familiar with the situation told Dow Jones Newswires Friday that the package is worth about EUR4.5 billion.

Italy is in a deep recession. The Organization for Economic Cooperation and Development recently cut its 2009 forecast for Italian gross domestic product to a contraction of 5.5%, following a 1% decline last year, which would mark the deepest recession since World War II.

The government is also expected to release its revised economic forecasts in two or three weeks.


Web site: www.governo.it


-By Luca Di Leo and Sofia Celeste, Dow Jones Newswires; +39-06-69766920; sofia.celeste@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 13:13 ET (17:13 GMT)


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Ukraine's Economy Shrank 20.3% On Year In 1Q - Official Data

Ukraine's Economy Shrank 20.3% On Year In 1Q - Official Data

KIEV (AFP)--Ukraine's economy contracted 20.3% in the first three months of this year compared with the first quarter 2008, the National Statistics Office said in a statement on Tuesday.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 12:57 ET (16:57 GMT)


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2nd UPDATE: Spain 1Q House Prices -7.6% On Yr, -2.7% On 4Q

2nd UPDATE: Spain 1Q House Prices -7.6% On Yr, -2.7% On 4Q

(Adds details.)


MADRID (Dow Jones)--Spanish housing prices posted a record decline in the first quarter, marking an accelerating collapse in a once-booming real-estate market that helped bring on one of Europe's deepest recessions.

Data from the Spain's National Statistics Institute, or INE, Tuesday showed that Spanish house prices fell at a 7.6% annual rate in the first quarter of 2009, compared with a 5.4% annual rate in the fourth quarter, and a 3% decline in the third quarter.

The yearly decline was the steepest in government records dating back to 1995.

First-quarter housing prices fell 2.7% from the quarter earlier.

Secondhand home prices fell 12.5% on the year, while prices for new houses dropped 2%.

The correction of Spain's formerly buoyant housing market is gathering pace even as the situation in other countries that have recently gone through boom-to-bust cycles shows signs of stabilizing.

The Nationwide Building Society of the U.K., for example, Tuesday said home prices in the U.K. rose at a 0.9% monthly rate in June after a 1.3% gain in May.

Most analysts expect prices to continue falling in Spain as builders try to unload a stock of an estimated 1 million unsold homes. At the same time, home sales are falling sharply.

Earlier this month, Banco Bilbao Vizcaya Argentaria SA, Spain's biggest mortgage lender, said it forecasts Spanish housing prices will fall 10% this year and 12% next year.

The sharp decline in Spain's labor-intensive home building sector has caused unemployment to soar and economic output to contract sharply.

Spanish first-quarter unemployment stood at 17.34%, while gross domestic product fell 1.9% from the previous quarter.


INE Web site: www.ine.es


-By Christopher Bjork and Jonathan House, Dow Jones Newswires; +34 91 395 81 23; christopher.bjork@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 12:32 ET (16:32 GMT)


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Italy Econ Min: Tax Breaks For Companies Worth Some EUR4 Billion

Italy Econ Min: Tax Breaks For Companies Worth Some EUR4 Billion

ROME -(Dow Jones)- Italian Economy Minister Giulio Tremonti said Tuesday that tax breaks for companies that reinvest their profits to buy machinery will total about EUR4 billion.

Tremonti was speaking at a press conference in Rome.

The tax breaks are part of a stimulus plan, aimed at boosting investment and confidence in Italian businesses.


Web site: www.governo.it


-By Luca Di Leo and Sofia Celeste, Dow Jones Newswires; +39-06-69766920; sofia.celeste@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 12:14 ET (16:14 GMT)


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Brazil's Central Bank Buys Dollars At BRL1.9670

Brazil's Central Bank Buys Dollars At BRL1.9670

RIO DE JANEIRO (Dow Jones)--The Brazilian Central Bank bought U.S. dollars at a snap auction Tuesday for BRL1.9670 per dollar, the bank said.

The bank did not reveal the volume of dollars purchased.

The central bank has intervened in currency markets in recent days to prop up the dollar and limit a recent surge in the real amid heavy foreign-investment inflows.

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; jeff.fick@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 11:38 ET (15:38 GMT)


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Italy Econ Min: Government Stimulus Package Fully Financed

Italy Econ Min: Government Stimulus Package Fully Financed

ROME -(Dow Jones)- Italian Economy Minister Giulio Tremonti said Tuesday that the government's latest economic stimulus package, aimed at boosting investment and confidence in Italian businesses, is fully financed.

The government hasn't yet confirmed how much the stimulus is worth, but a person familiar with the situation told Dow Jones Newswires Friday that the package is worth about EUR4.5 billion.

Speaking at a press conference in Rome, Giulio Tremonti also said Italian companies and families will save EUR2 billion from lower bank fees.

The stimulus package includes tax breaks for companies and other measures.


Web site: www.governo.it


-By Luca Di Leo and Sofia Celeste, Dow Jones Newswires; +39-06-69766920; sofia.celeste@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 11:30 ET (15:30 GMT)


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Brazil Stocks Erase Gains, Sink 1.7% On US Economic Data

Brazil Stocks Erase Gains, Sink 1.7% On US Economic Data

RIO DE JANEIRO (Dow Jones)--Brazil's benchmark Ibovespa stocks index erased early session gains Tuesday as U.S. data continued to show the economic troubles were far from over.

The Ibovespa was down 1.7% at 51,221 as of 1447 GMT (10:47 a.m. ET) after peaking shortly after the open at a session high of 52,435 points, up 0.6%.

The real currency also weakened from a strong start, trading at BRL1.951 per dollar after opening at BRL1.9425.

Consumer confidence and a continued decline in U.S. home prices undercut investors' appetite for equities, analysts said.

The Conference Board's consumer confidence index fell to 49.3 from a revised 54.8 in May. Economists expected a reading of 56.0. The S&P Case-Shiller home-price indexes also showed U.S. home prices continued their multiyear tumble in April.

Key commodity shares were leading the index lower. State-run energy giant Petroleo Brasileiro (PBR) was off 1.2% at BRL32.64. Bellwether miner Vale SA (VALE) tumbled 1.1% to BRL29.98.

Electronic payments company Visanet (VNET3.BR) also retreated after its stellar debut Monday, slipping 0.1% to BRL16.76. Visanet raised BRL8.4 billion in the world's largest initial public offering so far in 2009.

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; Jeff.Fick@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 10:56 ET (14:56 GMT)


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Chicago Business Index Shows Economy Shrinks At Slower Pace

Chicago Business Index Shows Economy Shrinks At Slower Pace
   By Howard Packowitz
Of DOW JONES NEWSWIRES


CHICAGO -(Dow Jones)- The pace of economic contraction slowed in the Chicago area during June, bolstering the view that the U.S. economy will break out of its deep recession late this year.

The Institute for Supply Management-Chicago said Tuesday that its Chicago Business Barometer, formerly known as the Chicago PMI, rose to 39.9 in June, from 34.9 in May and 40.1 in April.

The last three barometer readings were all above the March figure of 31.4, which was the lowest in almost 29 years.

Based on the recovery that took place following the deep recession of the early 1980's, ISM-Chicago projects that this recession will end by December 2009.

The June barometer reading remained below 50.0, which shows continued economic contraction.

The latest data came in above economists' estimates. They forecast a 39.0 reading for June, according to the Dow Jones Newswires survey.

The Chicago report was released amid uncertainty among investors whether the economy is improving.

Some members of the monetary policy making Federal Open Market Committee have in recent weeks that they expect the economy to show some signs of growth in the second half of this year. However, they don't see a pick-up in employment until 2010.

The FOMC said after its most recent policy session last Wednesday that the pace of economic contraction is slowing, although economic activity is "likely to remain weak for some time."

The panel opted to keep the key short-term fed-funds rate at a lowest-ever range of zero to 0.25%, where it has stood since last December. Many investors believe the rate will stay at that level for a long time.

In a news release, ISM Chicago said "support for an impending end to the current recession was found in increased index values for both new orders and order backlogs."

New orders rose to 41.6 in June from 37.3 in May. Order backlogs improved to 37.6 in June, the highest since October 2008. May order backlogs stood at 26.3.

An increase in the June's prices paid index "signals improvement in an economy that is still shrinking, but at a slower rate," ISM-Chicago said.

The prices paid index increased to 36.3 in June from 29.8 in May.

"While purchasing professionals seldom welcome increased prices, economists view increases in the prices paid index as an indication of firming demand," the news release said.

ISM-Chicago reported a modest improvement in its employment index, although it posted in 19th consecutive month of sub-50 readings.

The employment index stood at 28.9 in June from 25.0 in May.

The Chicago report is closely followed because it comes a day before the release of data on national manufacturing.

The Institute for Supply Management is scheduled to release its monthly manufacturing index Wednesday at 10 a.m. EDT.

The consensus estimate of economists surveyed by Dow Jones Newswires projected a June ISM reading of 45.0, from 42.8 in May.

The Chicago Business Barometer and the accompanying data are compiled by Kingsbury International.

Next month's index is scheduled to be released on July 31.

-By Howard Packowitz, Dow Jones Newswires; 312-750-4132; howard.packowitz@dowjones.com.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 10:50 ET (14:50 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE:Italy June Inflation Slows To Lowest Rate Since 1968

UPDATE:Italy June Inflation Slows To Lowest Rate Since 1968

(Adds details, background.)

By Luca Di Leo and Giada Zampano
Of DOW JONES NEWSWIRES


ROME (Dow Jones)--Italy's consumer price index rose less than expected in June, as prices recorded their smallest increase in 40 years, pulled down by lower food and energy prices, data showed Tuesday.

Preliminary figures from Italian statistics office Istat showed that June consumer prices rose 0.5% on the year, the smallest increase since September 1968, after rising an annual 0.9% in May.

On the month, consumer prices rose 0.1%, following a 0.2% rise in May.

A Dow Jones Newswires poll of five economists had predicted that June consumer price inflation would settle at an annual rate of 0.7% and would be 0.2% on the month.

Italy's European Union-harmonized inflation also slowed to an annual 0.6% in June from 0.8% in May. The June figure was the lowest since the new series of the E.U.-harmonized consumer price index started in 2001.

Italy's core inflation rate, which strips out volatile food and energy prices, slowed to an annual 1.6% in June, compared with a 1.9% rate in May.

An Istat official said the price rise of pasta slowed to 2.1% on the year in June from 4.8% in May. The rise in bread prices slowed to an annual 0.9% from 1.1%.

The slowdown in Italian inflation was less marked than in the rest of the euro zone. Consumer prices in the 16 countries that use the euro declined on the year in June, the first negative consumer price index reading since records began in January 1997.

European Union official statistics agency Eurostat said Tuesday that consumer prices in the euro zone fell 0.1% on the year in June. In May, consumer prices were flat on the year.

The annual CPI readings remain well below the inflation level of around 2% that the European Central Bank targets in the medium term.


Istat Web site: www.istat.it


-By Luca Di Leo and Giada Zampano, Dow Jones Newswires; +39 0669766921; luca.dileo@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 07:38 ET (11:38 GMT)


Copyright 2009 Dow Jones & Company, Inc.

IMF Sees Austria's '09 GDP -4%,'10 At Around Zero

IMF Sees Austria's '09 GDP -4%,'10 At Around Zero

VIENNA -(Dow Jones)- The global economic downturn will hit Austria harder than assumed by local forecasters, the International Monetary Fund said Tuesday, presenting its latest country report for the nation in Vienna.

The IMF expects Austria's economic output to contract by 4% in 2009, and come in flat against 2009 in 2010.

On June 26, the country's main forecaster, the Austrian Institute of Economic Research, or Wifo, pegged the 2009 contraction at 3.4%, while it said it expected to see 0.5% growth in 2010.

The IMF said Austrian exports in particular have been severely affected by the global downturn, while private consumption has proven relatively resilient until now.

IMF economist Paul Hilbers, who heads the organization's monetary and financial systems department, commended the Austrian government for acting in a swift and determined way to the crisis through fiscal stimulus and financial system stabilizing measures, but he also said politicians need to consider how to reduce the budget deficit in the medium and long term.

Hilbers added that the IMF doesn't think the threat to the Austrian financial system from massive credit defaults in eastern Europe - where Austrian banks are heavily exposed - is as serious as many have suggested.

"We don't see a threatening default scenario. Austrian banks are facing a difficult time in eastern Europe, but I wouldn't call them threatened," Hilbers said.

-By Flemming E. Hansen, Dow Jones Newswires; +43 1 513 69 22 10; flemming.hansen@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 07:27 ET (11:27 GMT)


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3rd UPDATE: Euro Zone M3 Growth At 12-Yr Low As Credit Slows

3rd UPDATE: Euro Zone M3 Growth At 12-Yr Low As Credit Slows

(Adds analyst comment, further background.)


By Geoffrey T. Smith
Of DOW JONES NEWSWIRES


FRANKFURT (Dow Jones)--Europe's recession continued to paralyze its banks in May, as their aversion to lend caused money supply growth to fall to its lowest rate since the creation of the single currency.

Growth in loans to the private sector slowed to 1.8%, from 2.4% in the year through April, according to data published Tuesday by the European Central Bank.

Despite an acceleration in borrowing by governments, overall credit growth in the 16-country area fell to 4.0% from 4.4% in April. Only lending to the area's governments accelerated, reflecting the widening budget deficits being used to soften the impact of the downturn. Annual growth in lending to governments quickened to 8.3% year-on-year, from 8.0% a month earlier.

The headline growth in M3 money supply in the euro area slowed much more than analysts had expected, to 3.7% in May from 4.9% in April. This is the slowest rate of growth since 1997, when the euro zone's prospective members were desperately squeezing their budgets in order to meet the Maastricht Treaty's criteria for adopting the single currency.

Analysts polled ahead of the release by Dow Jones Newswires had predicted a slowdown to only 4.4%.

The annualized rate of growth over the last three months - a measure which smoothes out some shorter-term fluctuations - also fell to 4.5% from 5.2% in the February-April period, confirming the trend.

"The data reflect two ongoing factors: tight bank lending standards and the general apathy for credit from the private sector," said Guillaume Menuet, senior European economist with Bank of America Securities-Merrill Lynch in London.

The narrower M1 money supply measure, which consists of cash in circulation and sight deposits, grew by a more robust 7.9% in the year through May, but that too represented a slowdown from April's 8.4%.

"M1 is the bright spot," Menuet said. "As one of the most forward-looking indicators, its more substantial growth clearly shows that the euro zone economy will start to rebound in the second half of the year."

Menuet and his team predict the euro area's gross domestic product will grow 0.2% in the third quarter and 0.3% in the fourth quarter of this year.

The near-term picture, however, remains a depressed one. The figures extend a long downward trend in monetary growth, reflecting the increased reluctance or inability of banks in the euro area to find profitable and reliable opportunities for lending. M3 money supply grew by 7.5% in 2008, but had already started to slow sharply in the fourth quarter of last year, and its growth has slowed in every month of 2009 so far. It is now below the reference value of 4.5% that the ECB set as its benchmark for this year.

Overall lending to households even turned negative in year-on-year terms in May, contracting by 0.2%. Consumer loans fell 0.6% and loans for house purchases fell by 0.5% from a year earlier. Miscellaneous other loans to households grew 1.8%

It is against the background of this trend that the ECB injected EUR442.3 billion into the money market last week for a record duration of 12 months, hoping to give banks enough certainty in the short- to medium-term to resume lending to one another and to the real economy.

The ECB's data indicate that the banks have so far failed to mobilize most of those funds, hoarding over EUR242 billion in the ECB's own deposit facility as of Monday.

-By Geoffrey T. Smith, Dow Jones Newswires; (+49 69) 29725-520; geoffrey.smith@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 07:20 ET (11:20 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE: Encouraging Key Economic Data Out Of Scandinavia

UPDATE: Encouraging Key Economic Data Out Of Scandinavia

(Focus on regional data from Scandinavia with analyst comment)

By Joel Sherwood

Of DOW JONES NEWSWIRES

Key economic data out of Scandinavian countries Tuesday came in better than expected, lifting optimism that the region may be suffering a bit less than others in the challenging global economic environment.

May retail sales in Sweden and Norway came in higher than anticipated, data from the country's respective national statistics agencies showed.

Sweden's retail trade in the month climbed 0.2% compared with the previous and was a robust 4.4% higher than May a year ago.

Most economists had expected flat or lower movement in the index compared with April and foresaw the annual increase at around half of what it turned out to be.

In addition, the April annual rate was revised up to a brisk 6% from 5%.

Norway's May seasonally-adjusted retail sales, excluding motor vehicles and fuels, rose 1.9% on the month after climbing 1.4% in April.

At a time when most economies in Europe are seeing retail sales' declines, the two consecutive months of strong retail trade in Sweden and Norway have drawn the attention of economists.

Both sets of data are "surprisingly strong" said economists at SEB.

The figures won't directly influence the Swedish central bank's near-term policy, they felt. The Riksbank is expected to hold rates steady at 0.5% at its next announcement Thursday.

However, the numbers "could make the Riksbank more comfortable when predicting positive gross domestic product growth rates next year," said Stockholm-based SEB economist Henrik Mitelman in a research note.

The Norway data "backs our forecast that the next rate change from [Norway's central bank] will be upwards," perhaps early next year," said Shakeb Syed, an economist with Handelsbanken in Oslo.

Norges Bank surprised with 25 basis point rate cut to 1.25% earlier this month.

In Denmark, first-quarter economic performance, although in decline, turned out less dismal than feared.

The country's gross domestic product contracted by a seasonally adjusted 1.1% on the quarter and was 4.1% weaker year-on-year. Most economists had forecast an on-quarter decrease of close to 2%.

Steen Bocian, chief economist at Danske Bank, said contracting GDP means the economy "is no doubt under significant pressure."

However, "it's all relative these days," he said, adding, it seems the Danish economy may be "a little bit less hurt than some others" by the global financial crisis.

Statistic agency Web sites: www.scb.se, www.ssb.no, www.dst.dk

-By Joel Sherwood, Dow Jones Newswires, +46 85 45 13 092, joel.sherwood@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 07:00 ET (11:00 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE:Barroso:Confident Lisbon Treaty To Be Ratified By Fall

UPDATE:Barroso:Confident Lisbon Treaty To Be Ratified By Fall

(Adds comment.)

BRUSSELS -(Dow Jones)- European Commission President Jose Manuel Barroso Tuesday said he is confident all 27 European Union countries will ratify the bloc's stalled Lisbon Treaty by this autumn.

The treaty, designed to streamline the E.U.'s decision-making process, suffered another setback earlier Tuesday when Germany's highest court ruled the country couldn't ratify the treaty until changes are made to national legislation.

"I am confident that with this judgement, the court has cleared the way for a swift conclusion of the German ratification of the Lisbon Treaty, and I welcome the intentions already stated in this respect by German legislators," Barroso said in a statement.

Irish voters last year rejected the treaty. The country is due to hold a second referendum on the pact in October.

-By Adam Cohen, Dow Jones Newswires; +322 741 1486; adam.cohen@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 06:58 ET (10:58 GMT)


Copyright 2009 Dow Jones & Company, Inc.

2ND UPDATE: Euro-Zone CPI Falls First Time On Record In June

2ND UPDATE: Euro-Zone CPI Falls First Time On Record In June

(Adds detail, economist comment.)

By Ilona Billington
Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--Consumer prices in the 16 countries that use the euro declined on the year in June, the first negative consumer price index reading since records began in January 1997.

European Union official statistics agency Eurostat said Tuesday that the euro-zone CPI fell 0.1% on the year in June. In May, the index was flat on the year.

While a decline was expected, economists surveyed by Dow Jones Newswires last week were expecting a steeper decline of 0.2%.

With inflation slowing further below the European Central Bank's inflation target rate of around 2% in recent months, the ECB recently said it is expecting consumer prices to fall on the year, adding that this will be short-lived and prices should start rising again by the end of the year.

Other price data, however, suggest that a longer period of deflation and also a fall in core consumer prices, which strip out volatile food and energy prices, in 2010 is likely.

"At this stage, we expect negative inflation rates for the next six months or so," said Daniele Antonucci, European economist for Capital Economics. "With factory gate prices falling, wage growth likely to slow sharply and a big amount of spare capacity in the economy, core inflation will decelerate considerably."

The forward-looking producer price indexes for May from both France and Italy dropped sharply on the year.

In France, the PPI fell 0.2% on the month and 6.7% on the year, although French statistics office INSEE said this was a less steep decline than the 7.8% annual fall reported in April. The decline was largely due to lower food prices.

In Italy, producer prices fell 0.2% on the month and 6.1% on the year, the sharpest fall since January 2006. The fall, here, was driven by lower energy costs, statistics office Istat said.

Money-supply data for the euro zone released earlier Tuesday by the ECB showed that growth slowed sharply in May, suggesting "that the downside risks to inflation in the longer term continue to rise," said Martin van Vliet, European economist for ING Economics.

And, the Organization for Economic Cooperation and Development said Wednesday that the annual inflation rate for the OECD's 30 members was just 0.1%. That is the lowest rate since records began in 1971 and 10 of the 30 member countries reported annual deflation.

Although the widespread reports of falling consumer prices are a concern, economists say the danger of core deflation in 2010 is even more worrying.

"While the negative headline CPI print will no doubt attract headlines, we are now approaching the low point for energy and food inflation," said Eoin O'Callaghan, European economist for BNP Paribas SA. "It is the potential for negative core inflation that is far more newsworthy."

O'Callaghan added that he expects a gentle downward trend to continue in the core measure of inflation "and we expect negative core prints by the second half of 2010."

The ECB is expected to keep its key interest rate and other policy measures unchanged at its meeting Thursday, but economists say that the central bank's less aggressive approach could have dire consequences for the euro zone.

"With a more timid policy response than elsewhere, the risk is that the euro zone might ultimately enter a more prolonged and damaging period of deflation," said Capital Economics' Antonucci.

-By Ilona Billington, Dow Jones Newswires; 44 20 7842 9452; ilona.billington@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 06:58 ET (10:58 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Irish 1Q GDP Declines 8.5% As Recession Deepens Further -CSO

Irish 1Q GDP Declines 8.5% As Recession Deepens Further -CSO

DUBLIN (Dow Jones)--Irish gross domestic product at constant prices contracted 8.5% in the first quarter of 2009 versus a 7.5% decline in the previous quarter, the Central Statistics Office said Tuesday.

Gross national product, or GNP, excluding the crucial multinational sector credited for creating the 1990s Celtic Tiger economy, declined 12% in the first quarter of 2009 versus a 6.7% decline in the fourth quarter of 2008, the CSO said.

On a seasonally-adjusted basis, GDP receded 1.4% in the first quarter of 2009 and GNP declined 4.5%. In the first quarter of 2008, GDP declined 1.5% on the year, while GNP rose a moderate 0.8%, according to the CSO. In 2008, GDP declined an average of 2.3% while GNP declined 3.1%.

This small, open economy was the first in the euro zone to slide into recession and looks to be the worst-performing economy in the currency area this year, with the E.U. predicting Ireland's GDP will recede by 9% in 2009.

-By Quentin Fottrell, Dow Jones Newswires; +353-1-676 2189; quentin.fottrell®dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 06:38 ET (10:38 GMT)


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EU Barroso: Confident Lisbon Treaty Will Be Ratified By Fall

EU Barroso: Confident Lisbon Treaty Will Be Ratified By Fall

BRUSSELS -(Dow Jones)- European Commission President Jose Manuel Barroso Tuesday said he is confident all 27 European Union countries will ratify the bloc's stalled Lisbon Treaty by this autumn.

The treaty, designed to streamline the E.U.'s decision-making process, suffered another setback earlier Tuesday when Germany's highest court ruled the country couldn't ratify the treaty until changes are made to national legislation.

Irish voters last year rejected the treaty. The country is due to hold a second referendum on the pact in October.

-By Adam Cohen, Dow Jones Newswires; +322 741 1486; adam.cohen@dowjones.com

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(END) Dow Jones Newswires

June 30, 2009 06:33 ET (10:33 GMT)


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CORRECT: DATA SNAP: OECD Annual Inflation Rate Hits Record Low

CORRECT:=DATA SNAP:OECD Annual Inflation Rate Hits Record Low

("=DATA SNAP: OECD Annual Inflation Rate Hits Record Low In May," at 1000 GMT, misstated the day in the first paragraph. The correct version follows:)

By Nicholas Winning

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--The annual rate of inflation across developed economies dropped to its lowest level for at least 38 years in May following another sharp drop in energy prices, the Organization for Economic Cooperation and Development said Tuesday.

Consumer prices in the OECD's 30 members rose 0.1% in the 12 months to May, the lowest level since records began in 1971. Ten OECD member countries registered a drop in consumer prices on the year, thereby helping pull the annual inflation rate below the previous record low of 0.6% in April.

On the month, prices rose 0.2% in May, matching the rise seen in April. As recently as July 2008, the OECD annual inflation rate stood at an 11-year high of 4.9%.

According to the OECD, energy prices in its 30 members fell 16.2% in the year to may following a 13.5% drop in April. Food prices rose 2.7% in the year to May after increasing 3.4% in the 12 months to April.

The continued drop in the inflation rate is likely to stir concerns that the developed economies may be headed for a period of deflation. With the global economy set to contract this year for the first time since the end of World War II, prices for a wide range of goods and services may fall.

Deflation is commonly described as a sustained period of falling prices. It is bad for an economy because it encourages consumers to put off spending in the hope that goods will be cheaper still in the future, thereby slowing production and output in the world's major economies.

But in a sign that some prices are holding up, the OECD said core inflation, which excludes food and energy prices, eased only slightly to 1.7% in the year to May from 1.8% in April, matching a level last seen in March 2006.

The OECD report showed Iceland had the highest annual inflation rate of 11.7% in May while Ireland had the lowest at -4.7%. The other countries that registered a drop in prices on the year were the U.S., Japan, France, Switzerland, Sweden, Spain, Portugal, Luxembourg and Belgium.

Web site: www.oecd.org

-By Nicholas Winning, Dow Jones Newswires; +44 20 7842 9491; nick.winning@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 06:26 ET (10:26 GMT)


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Finnish Economy Minister Wants New Stimulus Measures - Report

Finnish Economy Minister Wants New Stimulus Measures - Report

HELSINKI (AFP)--Finland's economy minister said his government must increase borrowing to curb unemployment and boost the economy if it does not start to recover by August, in comments published Tuesday.

"If the real economy has not started to straighten out and unemployment is soaring towards 11 percent when the August budget negotiations come around, the government has to take a bolder, more stimulating approach," Economy Minister Mauri Pekkarinen told daily Turun Sanomat.

Pekkarinen said it was possible the economy could shrink by nearly 7% this year, if demand for Finnish mobile phones and cruise ships did not start to pick up.

Pekkarinen said the government shouldn't hesitate to use borrowed money to tackle increasing unemployment.

"Finland cannot let the dive deepen, because that would result in a crumbling of the real economy," he said, adding that borrowing would cause the public debt to exceed the 68% of gross domestic product reached during Finland's previous economic crisis in the 1990s.

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(END) Dow Jones Newswires

June 30, 2009 06:07 ET (10:07 GMT)


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Mixed European Markets, GBP under pressure on UK GDP collapse

FXstreet.com (Barcelona) - European markets have turned mixed after opening higher in today's session as GDP collapse could ease the previous confidence on economic recovery. Oil and commodities are rising so far today, UK GDP has posted the biggest drop since 1958, a worse data than expected which has pushed the Sterling under pressure.

Eurostoxx 50 is posting 0.16% gains, DAX Xetra rises 0.10%, IBEX 35 is 0.20% higher and CAC 40 advances 0.09% so far today, on the other hand, AEX declines 0.28% today. Oil barrel is rising 1.00% to climb above $72.00, Gold is trading around 941.50.

United Kingdom has posted the biggest contraction since 1958, fueled by industries from construction to services. UK GDP has decreased 2.4% QoQ in the 1Q, worse than 2.1% drop market expectations and well below of 1.9% declines posted in the previous quarter. UK GDP has fallen 4.9% YoY in the first quarter, worse than 4.3% drop expected and 4.1% declines posted in the last quarter of 2008.

Eurozone has posted the first negative reading in its preliminary CPI, with a 0.1% decline in June.

GBP/USD has lost almost all of its initial gains and it is trading around 1.6600/10, 0.20% above today's opening price. GBP/JPY has fallen to 158.50 after rejecting from 160.30, currently the pair is trading around 159.10/20, 0.15% below today's opening price.

EUR/USD has rebounded at 1.4080 and currently the pair is trading around 1.413040, 0.25% above today's opening price.

Asian Shares End Mixed; Sensex Leads Losers, Falls 1.7%

Asian Shares End Mixed; Sensex Leads Losers, Falls 1.7%

SINGAPORE (Dow Jones)--Asian stock markets ended mixed Tuesday, with overnight gains on Wall Street and higher oil prices setting the stage for an advance in Japan and Australia.

But Chinese and Indian stocks retreated as investors locked in profits on the last trading session of a robust half-year, with some anticipating a pullback in days ahead after hefty gains over the past three months.

"Investors expect that after the recent window-dressing activities, the market will enter a phase of correction," said Ben Kwong, chief operating officer at KGI Asia, referring to purchases made by institutional investors recently to shore up the value of their stock portfolios.

Japan's Nikkei 225 Average closed up 1.8% at 9958.44, failing to stay above the psychologically-important 10,000-point level that it briefly crossed during the session, on caution ahead of the Bank of Japan's tankan business sentiment survey due Wednesday.

Earlier in the day, data showed that all-household spending in May rose 0.3% year-on-year, up for the first time in 15 months, and beating expectations for a 1.2% decline. But that was tempered by the release of May jobless data, which rose to 5.2%, the highest since September 2003, from 5.0% in April.

Australia's S&P/ASX 200 Index advanced 1.8% to 3954.90, with retailers rising on an improved profit guidance from David Jones, which surged 10.2%. Shares of Woolworths edged up 2.7%.

"The upside looks greater than the downside at the moment," said AmFraser's senior vice president of equity sales, Gabriel Gan. "I think the market will remain fairly strong unless we get a really nasty piece of news from the U.S., which looks unlikely, and the July 4 holiday (in the U.S.) is traditionally a good time for the market."

Still, some market watchers warned the rally could fizzle out soon. "I'm skeptical on whether this run up is a return of confidence as I feel investors are still cautious after the market's recent gains," said Westcomb research head Goh Mou Lih in Singapore.

China's Shanghai Composite dropped 0.5% after rising the previous four sessions, also pressuring Hong Kong shares. The Hang Seng Index gave up 0.8% and the Hang Seng China Enterprises Index slipped 0.2%.

India's Sensex slid 1.7%. South Korea's Kospi added 0.1%, New Zealand's NZX 50 gained 0.8%, Taiwan's Taiex rose 0.6% and Singapore's Straits Times was up 0.7%.

Dow Jones Industrial Average futures were recently quoted 14 points higher in screen trade.

Energy shares were broadly higher as August crude-oil futures extended their gains overnight following news of militant attacks on Royal Dutch Shell's oil facility in Nigeria.

Shares of Inpex climbed 5% in Tokyo, while in Sydney, BHP Billiton rose 2.4% and Woodside Petroleum advanced 1.6%. Shares of energy producer Cnooc fell 0.7% in Hong Kong, in line with the broad market. But refiner China Petroleum & Chemical Corp., or Sinopec, climbed 3.3% after China allowed an increase in motor fuel prices.

August crude-oil futures were recently up 76 cents at $72.25 a barrel on Globex, edging further up after rising $2.33 to $71.49 a barrel on the New York Mercantile Exchange.

Japanese steel and real-estate stocks were also higher, with Nippon Steel up 3.6% while Mitsui Fudosan gained 2.8%.

In Mumbai, the fall was led by profit-taking in real estate and automobile stocks, with DLF losing 6% and Tata Motors sliding 5.9% in afternoon trading.

In New Zealand, shares of Pumpkin Patch jumped 10.4% after the company said it was shutting several stores in the U.S. in an effort to cut costs. Telecom, however, slipped 0.4% after the Commerce Commission said in its preliminary view that mobile termination prices - wholesale charges for terminating calls or texts from other fixed or mobile networks - should be regulated.

Malaysia's main share index fell 0.1% despite Prime Minister Najib Razak announcing the government planned to deregulate foreign investment rules, including removing the decades-old 30% ethnic Malays ownership requirement for initial public offerings and raising the foreign ownership limit on unit trust companies and brokerages. He added all property transactions no longer required Foreign Investment Committee approval.

Sterling dominated excitement in currency trading with the pound taking a dive as the U.K.'s first quarter gross domestic product posted its largest quarterly decline in fifty years and the biggest year on year drop on record. The pound dropped half a cent against the U.S. dollar to 1.6605, which is one and a half cents off the day's 1.6746 eight-month high seen during the Asian session after U.K. mortgage lender Nationwide Building Society said U.K. house prices may only post single-digit percentage losses for 2009.

Elsewhere, the euro was at $1.4120, from $1.4077 late in New York, and at 135.34 yen, from 135.22 yen. The U.S. dollar was at 95.84 yen, down from 96.04 yen. Traders said further falls were likely to be limited as players were unwilling to make big bets against the U.S. dollar ahead of the U.S. June non-farm payrolls on Thursday.

Spot gold was at $940.80 a troy ounce, up $3.50 from New York, aided by stronger oil prices.

-Dow Jones Newswires; +65-6415-4140; markettalk@dowjones.com

TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAsia@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.

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(END) Dow Jones Newswires

June 30, 2009 06:05 ET (10:05 GMT)


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DATA SNAP:Irish May Pvt Sector Credit Growth 0.8%;Record Low

DATA SNAP:Irish May Pvt Sector Credit Growth 0.8%;Record Low

By Quentin Fottrell
Of DOW JONES NEWSWIRES


DUBLIN (Dow Jones)--Irish annual private-sector credit growth, adjusted for the exchange rate, was 0.8%, the lowest since the series began in 1990, compared with a revised 1.6% in April and 15.1% a year earlier, the Central Bank of Ireland said Tuesday.

The growth in private-sector credit fell by EUR1 billion in May after April's EUR1.8 billion decline, due to the decline in residential mortgage lending as a result of the property crash.

Residential mortgage lending fell over EUR18 million in May - the second time it fell since the monthly private-sector credit series began. The annual growth rate was 2.6% in May, a historic low, compared with growth of 3.3% in April.

Payments on credit cards have exceeded new spending every month in 2009, leading to the annual rate of increase in outstanding indebtedness on credit cards to slow to 0.1% in May from 0.8% in April and 11.9% in April 2008.

Total lending by credit institutions in Ireland to non-government Irish residents decreased by EUR981 million in May to EUR389.6 billion, with a EUR864 million decrease in non-euro lending.

Financial institutions in Ireland accounted for EUR199.8 billion of the euro zone's broad money supply, or M3, in May, a monthly decrease of EUR6.8 billion, or a fall of 3.3%, the Central Bank of Ireland added.

-By Quentin Fottrell, Dow Jones Newswires; +353-1-676-2189; quentin.fottrell@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 06:00 ET (10:00 GMT)


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DATA SNAP: OECD Annual Inflation Rate Hits Record Low In May

DATA SNAP: OECD Annual Inflation Rate Hits Record Low In May

By Nicholas Winning

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--The annual rate of inflation across developed economies dropped to its lowest level for at least 38 years in May following another sharp drop in energy prices, the Organization for Economic Cooperation and Development said Wednesday.

Consumer prices in the OECD's 30 members rose 0.1% in the 12 months to May, the lowest level since records began in 1971. Ten OECD member countries registered a drop in consumer prices on the year, thereby helping pull the annual inflation rate below the previous record low of 0.6% in April.

On the month, prices rose 0.2% in May, matching the rise seen in April. As recently as July 2008, the OECD annual inflation rate stood at an 11-year high of 4.9%.

According to the OECD, energy prices in its 30 members fell 16.2% in the year to may following a 13.5% drop in April. Food prices rose 2.7% in the year to May after increasing 3.4% in the 12 months to April.

The continued drop in the inflation rate is likely to stir concerns that the developed economies may be headed for a period of deflation. With the global economy set to contract this year for the first time since the end of World War II, prices for a wide range of goods and services may fall.

Deflation is commonly described as a sustained period of falling prices. It is bad for an economy because it encourages consumers to put off spending in the hope that goods will be cheaper still in the future, thereby slowing production and output in the world's major economies.

But in a sign that some prices are holding up, the OECD said core inflation, which excludes food and energy prices, eased only slightly to 1.7% in the year to May from 1.8% in April, matching a level last seen in March 2006.

The OECD report showed Iceland had the highest annual inflation rate of 11.7% in May while Ireland had the lowest at -4.7%. The other countries that registered a drop in prices on the year were the U.S., Japan, France, Switzerland, Sweden, Spain, Portugal, Luxembourg and Belgium.

Web site: www.oecd.org

-By Paul Hannon, Dow Jones Newswires; +44 20 7842 9491; paul.hannon@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 06:00 ET (10:00 GMT)


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UPDATE: UK Current Account Boosted By Bank Profits

LONDON (Dow Jones)--The U.K.'s current account deficit narrowed in the first quarter of 2009 as the overseas operations of U.K. banks returned to profitability.

The Office for National Statistics Tuesday said the current account deficit for the first three months of the year narrowed to GBP8.5 billion from GBP8.8 billion in the final quarter of last year. That latter figure was revised wider from GBP7.6 billion.

The deficit was wider than expected, with economists surveyed last week having estimated it at GBP6.9 billion.

As a share of economic output, the deficit rose to 2.5% of gross domestic product from 2.4% of GDP.

The surplus on investment income rose to GBP3.5 billion from GBP0.2 billion in the fourth quarter, while the deficit on the trade in goods fell to GBP20.8 billion from GBP22.3 billion.

The rise in the income surplus was largely due to the overseas operations of U.K. banks, which were largely responsible for a GBP8.2 billion increase in the earnings businesses generated outside the U.K.

"The increase was largely due to the subsidiaries of monetary financial institutions making profits in the first quarter, following large losses in the previous quarter," the ONS said.

The U.K. operations of overseas investment banks also returned to profitability, leading to a GBP2.0 billion increase in the income foreign businesses derived from their activities in the country.

The ONS said the U.K. attracted record amounts from overseas investors in the first quarter, with GBP122.2 billion flowing into its debt and equity markets, up from GBP38.2 billion in the fourth quarter.

Debt markets attracted the bulk of those funds, a total of GBP96.9 billion, including a record high of GBP58.9 billion in short-term securities.

Partly offsetting the rise in the surplus on income and the narrowing of the trade deficit, the surplus on the trade in services fell to GBP12.6 billion from GBP16.3 billion.

-By Paul Hannon, Dow Jones Newswires; +44 20 7842 9491; paul.hannon@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 05:43 ET (09:43 GMT)


Copyright 2009 Dow Jones & Company, Inc.

DATA SNAP: UK 1Q GDP -2.4% QQ; Largest Decline In 50 Years

DATA SNAP: UK 1Q GDP -2.4% QQ; Largest Decline In 50 Years

By Laurence Norman

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--The U.K. economy posted its sharpest decline in more than 50 years in the first quarter, suggesting the recession has been even harsher than previously thought, the Office for National Statistics said Tuesday.

The ONS said the economy slumped a downwardly revised 2.40% in the first quarter, which was narrowly the largest decline since the second quarter of 1958. The annual decline in output was 4.9%, the largest since records began in 1948.

Economists had expected a smaller downward revision in the first-quarter gross domestic product data. In a Dow Jones Newswires survey last week, they forecast the economy would shrink 2.2% on the quarter and 4.4% on the year.

First quarter GDP was originally reported at -1.9% on the quarter and -4.1% on the year.

The final reading of the national accounts data showed the household savings ratio slipped to 3.0% in the first quarter from 4.0% in the fourth, reflecting lower wages and salaries.

Household expenditure dropped 1.3% in the first quarter on a quarterly basis, the biggest decline since 1980. Real household disposable income fell 2.4%, also the largest since 1980.

The ONS revised 2008 GDP numbers. They found the economy shrunk 0.1% in the second quarter compared with flat output reported previously. That means the U.K. recession started in April 2008.

-By Laurence Norman, Dow Jones Newswires; 44-207-842-9270; laurence.norman@dowjones.com

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(END) Dow Jones Newswires

June 30, 2009 04:35 ET (08:35 GMT)


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DATA SNAP: UK Current Account Deficit Narrowed In 1Q

DATA SNAP: UK Current Account Deficit Narrowed In 1Q

By Paul Hannon

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--The U.K.'s current account deficit narrowed in the first quarter of 2009 as the income businesses earned from their overseas operations increased.

The Office for National Statistics Tuesday said the current account deficit for the first three months of the year fell to GBP8.5 billion from GBP8.8 billion in the final quarter of last year. That latter figure was revised wider from GBP7.6 billion.

The deficit was wider than expected, with economists surveyed last week having estimated it at GBP6.9 billion.

As a share of economic output, the deficit rose to 2.5% of gross domestic product from 2.4% of GDP.

The surplus on investment income rose to GBP3.5 billion from GBP0.2 billion in the fourth quarter, while the deficit on the trade in goods fell to GBP20.8 billion from GBP22.3 billion.

However, the surplus on the trade in services fell to GBP12.6 billion from GBP16.3 billion.

-Paul Hannon, Dow Jones Newswires, +44 20 7842 9491, paul.hannon@dowjones.com

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(END) Dow Jones Newswires

June 30, 2009 04:36 ET (08:36 GMT)


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DATA SNAP: UK Business Investment Slumped In 1Q

DATA SNAP: UK Business Investment Slumped In 1Q

By Paul Hannon

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--Business investment in the U.K. fell 7.6% in the first quarter from the previous quarter, and dropped 9.7% on the year, the Office for National Statistics said Tuesday.

The decline in investment was larger than the ONS had first estimated. Last month, it calculated that investment fell by 5.5% on the quarter and 6.8% on the year.

The fact that investment was weaker than thought in the first three months of the year contributed to a sharp downward revision in the ONS' estimate of gross domestic product over the period. The statistics agency Tuesday said it now calculates that GDP fell by 2.4% in the first quarter, having previously estimated that it fell by 1.9%.

The first-quarter decline in business investment was the sharpest quarterly drop since the second quarter of 1985. The ONS said investment by manufacturers fell by 4.2% from the fourth quarter, and was down 1.5% on the first quarter of 2008.

Investment by service providers outside the retail and distributive sector fell by 9.4% on the quarter and 13.2% on the year, while investment by construction companies fell by 14% on the quarter and 48.3% on the year.

-Paul Hannon, Dow Jones Newswires, +44 20 7842 9491, paul.hannon@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 04:36 ET (08:36 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Currency Rates Of Coffee Producing, Consuming Countries

Currency Rates Of Coffee Producing, Consuming Countries

LONDON (Dow Jones)--U.S. dollar exchange rates as of 09:37 GMT June 30, compared with 10:36 GMT June 36.

Producers:

30/06/09 (26/06/09)

Angolan Kwanza AON 74.971 (74.971)
Bolivian Boliviano BOB 7.02 (7.02)
Brazil Real BRL 1.954 (1.9416)
Burundi Franc BIF 465.35 (470.55)
*CFA Franc XOF 2155.5 (2167.5)
Colombian Peso COP 517.935 (517.935)
Costa Rican Colon CRC 1 (1)
Cuban Peso CUP 36 (35.975)
Dominican Republic DOP 24950 (24950)
Ecuadorean Sucre ECS 8.748 (8.748)
El Salvador Colon SVC 8.1345 (8.1415)
Ethiopian Birr ETB 11.364225 (11.41302)
Guatemala Quetzal GTQ 8.1345 (8.1415)
Guinea Franc GNS 4923.865 (4873.81)
Haiti Gourde HTG 36.15 (36.15)
Honduras Lempira HNL 18.89 (18.89)
Indian Rupee INR 47.97 (48.45)
Indonesian Rupiah IDR 10215 (10245)
Kenyan Shilling KES 76.75 (76.4)
Malawi Kwacha MWK 140.05 (150.05)
Mexican Peso MXN 13.1455 (13.211)
Nicaragua Cordoba NIC 19.7305 (19.843005)
Papua New Guinea Kina PGK 2.6261 (2.6368)
Peruvian New Sol PES 3.00399 (3.04226)
Philippines Peso PHP 48.145 (48.295)
Venezuelan Bolivar VEB 2147.5 (2147.5)
Vietnam Dong VND 17805 (17805)
Zambian Kwacha ZMK 5175.5 (5175.5)
Zimbabwe Dollar ZWD 423.5 (419)

CONSUMERS:


Danish Krone DKK 5.285 (5.3089)
#Euro EUR 1.4089 (1.4022)
Japanese Yen JPY 95.515 (95.875)
Norwegian Krone NOK 6.4235 (6.4565)
Swedish Krona SEK 7.6853 (7.8843)
Swiss Franc CHF 1.0821 (1.0914)

* = The CFA Franc is the common currency of 14 African countries which are
members of the Franc zone:
XOF = Benin, Burkina, Ivory Coast, Guinnea Bissau, Mali, Niger, Senegal
and Togo under the Central Bank of the West African States.
XAF = Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea
and Gabon, under the Bank of the Central African States.

# = Currencies that are quoted in U.S. dollars per unit of currency.
All other currencies are quoted in units of currency per U.S. dollar.

Source: OANDA Corp and yahoo.com.


-By Caroline Henshaw, Dow Jones Newswires; 4420-7842-9372; caroline.henshaw@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 04:38 ET (08:38 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Asian markets advances on commodities and oil; Dollar under pressure

Stocks in Asia are rising today's Tuesday session on commodities and oil higher, extending its record quaterly gains and Wall Street yesterday's gains. Oil prices climbed close to $73.00 a barrel as Nigeria's installations attacks and lower Dollar. Dollar is under pressure, losing ground against the rest of the majors.

Nikkei-225 Stock Average is climbing 2.00% so far today and the index is going toward the 10,000 pts level and MSCI Asia Pacific Index rises 1.2 percent. Wall Street posted gains yesterday, with Dow Jones rising 1.08%, consolidating above the 8,500 pts level, S&P 500 advanced 0.91% and Nasdaq post 0.32% increases.

Oil barrel is trading around $72.80 after climbing above $73.00 on Nigeria attacks on oil installations and Dollar helped push prices to eight-month highs.

EUR/USD has risen 0.25% so far today to post 3-week high, GBP/USD has climbing 1.00% today to reach 1.6733 as 8-month high.

USD/JPY has decreased 0.50% so far today to ease yesterday's gains and trade below 96.00, USD/CHF has fallen below 1.0800 to post intra-week low at 1.0778.

GLOBAL MARKETS: European Stocks Set To Slip; Caution Reigns

GLOBAL MARKETS: European Stocks Set To Slip; Caution Reigns

By Peter Nurse
Of DOW JONES NEWSWIRES


LONDON (Dow Jones)--European stocks are expected to open marginally lower Tuesday, as investors book Monday's gains ahead of the month's end and amid caution ahead of the upcoming earnings season.

"There are nagging doubts as to what the imminent 2Q earnings season will bring from across the Atlantic, whilst the month and quarter-end could also see many traders out there looking to book whatever profits they can," said Matt Buckland, a dealer at CMC Markets, "again reigning in the upside potential."

Buckland expected Europe's major indexes to slip at the open, with London's FTSE 100 index set to open 10 points lower at 4284. He also saw Frankfurt's DAX index falling 8 points to 4877, and the CAC-40 index in Paris down 13 points to 3180.

However, the latest batch of economic data could suggest an upturn, noted Buckland, including the final 1Q GDP figures from the U.K. "Although there is little doubt these will remain negative, an upward revision could in turn deliver further support. Euro-zone CPI and U.S. consumer confidence will also provide further direction on the economic agenda," he said.

U.S. stocks climbed Monday, seemingly getting some help from professional investors tweaking their portfolios before the end of the second quarter.

The Dow Jones Industrial Average added 90.99 points, or 1.1%, to 8529.38. The Nasdaq Composite index rose 5.84, or 0.3%, to 1844.06. The Standard & Poor's 500 index climbed 8.33, or 0.9%, to 927.23.

This positive tone on Wall Street helped Asian stock markets post gains early Tuesday.

"The upside looks greater than the downside at the moment," said AmFraser senior vice president of equity sales Gabriel Gan. "I think the market will remain fairly strong unless we get a really nasty piece of news from the U.S., which looks unlikely, and the July 4 holiday (in the U.S.) is traditionally a good time for the market."

Japan's Nikkei 225 closed up 1.8%, while South Korea's Kospi Composite ended 0.1% higher. Hong Kong's Hang Seng index was last seen 0.7% higher.

The crude oil futures market has shown a degree of strength over the last couple of days, boosted Tuesday to an eight-month high in electronic trading in Asia on a weaker dollar against the euro and news of militant attacks against Royal Dutch Shell's oil facility in Nigeria.

At 0630 GMT, the August crude contract on Globex stood at $72.97 per barrel, up $1.48, having settled Monday at $71.49 per barrel, up $2.33, on the New York Mercantile Exchange.

Buyers were galvanized by the latest reported production outage in Nigeria's strife-torn oil-producing region. Royal Dutch Shell PLC (RDSA) confirmed it was halting some output after militants claimed attacks on two clusters of wells at the company's Estuary field.

At 0630 GMT, spot gold stood at $944.70/oz, $34.70 higher than in late New York business Monday.

In the currency markets, the dollar was a touch lower overnight as investors braved thinning markets to push the risk rally even further, said Geoffrey Yu at UBS.

"Barring external shocks, the dollar remains a risk trade at this stage and the plight of banks in the coming months is a possible trigger for a market correction," added Yu.

At 0630 GMT, the euro stood at $1.4140, towards the upper end of its overnight $1.4071-$1.4153 range, while the dollar stood at Y95.74, having moved in a range of Y95.66-Y96.33.

The safe-haven sovereign debt markets opened flat Tuesday, despite the small selloff expected in the equity markets.

At 0630 GMT, the September bund contract stood at 121.15, unchanged.

-By Peter Nurse, Dow Jones Newswires; +44-20-7842-9288; peter.nurse@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 02:34 ET (06:34 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE: Hungary's Curr Acct Deficit Narrows Sharply In 1Q

UPDATE: Hungary's Curr Acct Deficit Narrows Sharply In 1Q
   By Margit Feher
Of DOW JONES NEWSWIRES


BUDAPEST (Dow Jones)--Hungary's current account deficit narrowed in the first quarter even more than expected by analysts on a rising trade surplus, lower profit repatriations and high European Union financial support, the central bank said Tuesday.

The current account deficit was EUR591 million in the first quarter of this year, narrower sharply from a deficit of EUR1.65 billion a year earlier and a deficit of EUR2.58 billion in the previous quarter, National Bank of Hungary said. That's also lower than the median forecast from six analysts polled by Dow Jones Newswires for a deficit of EUR990 million.

The country's net external financing ability, which is the balance of the current and the capital accounts, posted a surplus in the first quarter for the first time since 1995.

The first-quarter surplus was EUR272 million versus a deficit of EUR862 million a year ago and a deficit of EUR2.52 billion in the previous quarter.

"The surplus was owing to a decline in economic performance... and an extraordinary amount of European Union transfers," the central bank said.

Hungary's gross domestic product is expected by the government to fall nearly 7% this year and analysts expect the 2009 current account deficit to halve from last year's EUR8.9 billion.

Net financial support from the E.U. totaled EUR1.11 billion in the first quarter, with such transfers boosting the current transfers line by EUR244 million, and E.U. support accounted for among the capital transfers totaling a net EUR862 million.

As for the main component of the current account, the trade surplus increased in the first quarter to EUR685 million, from EUR372 million a year earlier and EUR86 million in the previous quarter. Exports fell 14% and imports 21% in the first quarter from the fourth quarter of last year as demand for Hungarian goods declined due to the global recession.

Both debt-related payments and profit repatriations by foreigners on their Hungarian fixed-capital investment fell sharply in the first quarter.

The current account is a key indicator for analysts to judge a country's economic health. Hungary faced huge "twin deficits" - large current account as well as budget deficits a few years ago and financial markets continue to eye both closely. Next to its current account, Hungary's budget has also been improving due to the country's tight fiscal policies.

Central bank Web site: www.mnb.hu

-By Margit Feher, Dow Jones Newswires; +36-20-925-2364; margit.feher@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 03:18 ET (07:18 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE: German Jobless Data Distortion Continues Into July

UPDATE: German Jobless Data Distortion Continues Into July

(Rewrites, adds detail.)

NUREMBERG (Dow Jones)--The number of seasonally adjusted jobless in Germany, as published by the labor office, will continue to be distorted by 15,000-20,0000 in June and July, a spokesman for the office told Dow Jones Newswires Tuesday.

Germany's monthly jobless report is due at 0755 GMT.

The office last month surprised economists with a change in its definition of job seekers, which drastically reduced the number of jobless published.

Economists said the changes should be seen as an attempt to sugar-coat adverse labor market trends ahead of general elections in September.

The labor office said more job seekers now had access to additional government measures, such as training or job placement schemes, to shield the labor market from the impact of the economic slump.

The office estimated that the impact of government labor market policies on the seasonally adjusted figures would be anywhere between 15,000 and 20,000 for the month of May.

That impact is likely to be of a similar size in both June and July, labor office spokesman John-Philip Hammersen Hammersen said Tuesday.

Economists in a Dow Jones Newswires survey expect unemployment to rise by a seasonally adjusted 50,000 in June, after adding 1,000 in the previous month.

Hammersen added that nearly all local labor offices across Germany reported a pessimistic outlook for the coming months.

As many as "97% of local labor agencies are expecting the situation to deteriorate in the coming months," Hammersen said, citing a monthly survey.

He said economists are right to expect unemployment to have risen in June in seasonally adjusted terms, but to have fallen in nominal terms. He declined to go into detail.

Labor office Web site: www.arbeitsagentur.de

-By Christine Popp and Roman Kessler, Dow Jones Newswires; +4969 2972 5514; roman.kessler@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 03:21 ET (07:21 GMT)


Copyright 2009 Dow Jones & Company, Inc.

OIL DATA: Table Of May Japan Oil Production Data - METI

OIL DATA: Table Of May Japan Oil Production Data - METI

The following preliminary totals in kiloliters.

                    May 2009      On-Year Change
All Oil Products
Production: 15,233,445 -10.3%
Imports: 2,329,709 -11.4%
Sales: 14,338,595 -12.5%
Exports: 2,279,935 -21.0%
Inventories: 12,318,842 +6.7%

Gasoline
Production: 4,471,715 -4.9%
Imports: 61,605 +17.1%
Sales: 4,716,933 +2.2%
Exports: 13,888 +109.9%
Inventories: 2,341,488 -0.5%

Naphtha
Production: 1,643,324 -1.1%
Imports: 1,987,701 -5.2%
Sales: 3,477,913 -9.4%
Exports: 0 NA
Inventories: 1,763,411 +5.5%

Jet Fuel
Production: 1,176,405 -20.9%
Imports: 0 NA
Sales: 308,951 -29.6%
Exports: 799,856 -18.2%
Inventories: 897,930 +6.4%

Kerosene
Production: 1,236,830 +6.7%
Imports: 0 NA
Sales: 827,292 -25.3%
Exports: 2,543 -96.7%
Inventories: 2,280,731 +26.0%

Gasoil
Production: 3,402,972 -10.6%
Imports: 0 NA
Sales: 2,598,346 -10.7%
Exports: 758,742 -15.1%
Inventories: 2,090,905 +14.8%

A-Fuel Oil
Production: 1,230,871 -19.7%
Imports: 6,005 +0.7%
Sales: 1,107,685 -25.3%
Exports: 47,040 +13.3%
Inventories: 1,196,669 +15.0%

B-Fuel/C-Fuel Oil
Production: 2,071,328 -21.5%
Imports: 274,398 -42.1%
Sales: 1,301,475 -35.0%
Exports: 657,866 -26.1%
Inventories: 1,747,708 -12.6%

Inventories represent stocks at oil refineries
NA = not available
Source: Ministry of Economy, Trade and Industry
Preliminary Monthly Oil Statistics

METI Web site address: http://www.meti.go.jp


-By Mari Iwata, Dow Jones Newswires; 813-6895-7572; mari.iwata@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 03:22 ET (07:22 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Swedish May Retail Sales +0.2% On Month

Swedish May Retail Sales +0.2% On Month

The following is a press release from Statistiska Centralbyran, or SCB, the Swedish central government authority for official statistics.

STOCKHOLM--Retail trade sales increased by 0.2% in May compared to April, seasonally adjusted figures. Compared to May 2008 the increase was 4.4%. Retail trade for mostly food increased 4.5% compared to May 2008 and retail trade for mostly durables increased by 4.4%.

Statistics Sweden Web site: www.scb.se

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(END) Dow Jones Newswires

June 30, 2009 03:30 ET (07:30 GMT)


Copyright 2009 Dow Jones & Company, Inc.

OECD Sees Slowdown In Migrant Workers Steepening In 2009

OECD Sees Slowdown In Migrant Workers Steepening In 2009

LONDON -(Dow Jones)- The number of people moving from one country to another in order to work has begun to fall in a number of leading economies, a decline that is likely to steepen this year, the Organization for Economic Cooperation and Development said Tuesday.

But in its annual report on labor migration, the Paris-based think tank said developed countries will once again need overseas workers when their economies recover, and governments should continue to improve their systems for handling migrants.

The OECD said there were already indications in 2008 of a slowdown in immigration in a number of developed economies.

In the U.S., the number of H-1B temporary visas granted in the 2008 fiscal year was down 15% from the previous year, while in Spain, new entries under a scheme driven by employer nominations fell to 137,000 in 2008 from 200,000 in 2007.

In the U.K., worker registrations in the fourth quarter of 2008 were down 45% on the same period in 2007, while in Australia, employer applications were down 11% in the 12 months ending February 2009.

However, the OECD said the fall in the number of migrant workers entering developed countries is likely to be larger this year.

"In most countries, the time it takes for the economic shock to affect the labor market and the lag between application and authorization of entry mean that the drop in labor demand will result in declines in entries only with some delay, probably in the course of 2009," the OECD said.

The increased movement of workers between countries has been one of the hallmarks of the globalization of the world economy over the past two decades, along with increased cross-border investment and bank lending, and increasing trade.

According to the OECD, of the two million additional jobs created in the U.K. between 1997 and 2007, 1.5 million were filled by people born outside the country. And 58% of the 15 million jobs created in the U.S. over the same period were filled by immigrants.

Like labor migration, those flows have declined sharply since the intensification of the global financial crisis in September 2008.

Earlier this month, the United Nations Conference on Trade and Development said global flows of foreign direct investment halved during the first three months of 2009, while according to the Bank for International Settlements, banks cut their overseas lending by $1.8 trillion in the fourth quarter, the largest drop since records began in 1977.

And according to the Netherlands Bureau for Economic Policy Analysis, world trade volumes fell by 0.6% in April. In the three months to April, trade volumes were down 6% from the three months to January.

The increased movement of workers was the most controversial of the flows associated with increased globalization, fueling concerns about employment opportunities and pay levels among adults in developed countries with and without jobs.

In recent elections to the European Parliament, the anti-immigration British National Party won its first seats since polling began in 1979, while the anti-immigration Dutch Freedom Party won the second largest share of the vote in the Netherlands.

Across the developed world, governments are limiting the number of immigrants.

"Numerical limits and lists of occupations in shortage have been reduced and employment tests are being applied more strictly," said Angel Gurria, the OECD's secretary general. "Programs to encourage immigrants to return to their home countries have been introduced and measures to combat irregular migration reinforced."

But the OECD said the flows served to address shortages of particular skills and the expected decline in working-age populations. When developed economies emerge from the recession, the OECD expects those drivers to return.

"With the onset of recovery, which may take some time, the pressures in the labor market will reassert themselves and international migration flows are likely to rebound as part of the solution to addressing these," Gurria said.

The OECD said migrant workers are suffering disproportionately from the rise in unemployment, which the OECD expects will exceed 10% in a number of developed economies by the end of 2010.

"Employers are often more reluctant to hire immigrants and more ready to fire them," Gurria said. "As a result, unemployment rates among immigrants have risen more than among native-born workers."

-Paul Hannon, Dow Jones Newswires, +44 20 7842 9491, paul.hannon@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 03:30 ET (07:30 GMT)


Copyright 2009 Dow Jones & Company, Inc.

DATA SNAP: Denmark 1Q GDP -1.1% On Quarter, -4.1% On Year

DATA SNAP: Denmark 1Q GDP -1.1% On Quarter, -4.1% On Year

DOW JONES NEWSWIRES

Denmark's economy continued to contract in the early part of this year as private consumption remained in a slump, data showed Tuesday.

The country's gross domestic product in the first quarter fell a seasonally adjusted 1.1% compared with the previous quarter and was 4.1% lower than the first quarter of 2008, Statistics Denmark said.

Private consumption was 2.3% lower on a quarterly basis, while public consumption fell 0.1%. Exports were down 1.6%, while imports dropped off by 4.2%.

The first-quarter figures extend the downward trend in the Danish economy, with GDP down 2% quarter-on-quarter in the fourth quarter and 0.9% in the third quarter.

The Scandinavian country is suffering from a down-turning housing market and from weaker global export demand.

Agency Web site: www.dst.dk

-By Joel Sherwood, Dow Jones Newswires, +46 85 45 13 092, joel.sherwood@dowjones.com

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(END) Dow Jones Newswires

June 30, 2009 03:46 ET (07:46 GMT)


Copyright 2009 Dow Jones & Company, Inc.

UPDATE: Spain 1Q Housing Prices -7.6% On Yr, -2.7% On Quarter

UPDATE: Spain 1Q Housing Prices -7.6% On Yr, -2.7% On Quarter

(Adds breakdown on prices for new and secondhand housing.)

MADRID (Dow Jones)--The decline in Spanish housing prices accelerated in the first quarter, with prices of new homes down for the first time since the start of the downturn, data from Spain's National Statistics Institute, or INE, showed Tuesday.

Spanish housing prices fell at a 7.6% annual rate in the first quarter of 2009, the INE said, compared with a 5.4% annual rate in the fourth quarter, and a 3% decline in the third quarter.

First-quarter housing prices fell 2.7% from the quarter earlier.

Secondhand home prices fell 12.5% on the year, while prices for new houses dropped by 2%. The first quarter was the first to recorded an annual decline in the prices of new housing.

Spain's home-building boom, one of Europe's largest, started to deflate in 2007 after prices reached nearly three times their 1997 levels and after years of overbuilding.

The correction was hastened last year by tougher financing conditions in the aftermath of the global banking crisis.

INE Web site: www.ine.es

-By Christopher Bjork, Dow Jones Newswires; +34 91 395 81 23; christopher.bjork@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=vtgt79XbJ%2FTpTPxxSJGGtQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

June 30, 2009 03:45 ET (07:45 GMT)


Copyright 2009 Dow Jones & Company, Inc.

Forex: USD/JPY falls below 95.60 support

The Yen appreciation against the Greenback has driven the USD/JPY to test the 95.60 support level, after falling 70 pips from yesterday high at 96.28 in the late session. Currently the pair is trading around 95.55/65, 0.60% below today's opening price action.

Rajoo C, analyst at Precise Trader, comments: "USDJPY held the level we suggested and closed @ 9610 which was above the open. The Hourly Oscillators are bullish but weak and price is resting on the MA, so Cautious approach is needed. Hourly Trend is Sideways Down and Daily Trend is Sideways, so expect the price to make lower lows while 9660 level holds. We believe any pull back towards 9660 will be a good short. The patterns on the 5min chart is suggesting that there will be a pull back and 9530 should hold on this leg down. We prefer to hold SHORT near 9620-9660 level or strictly trade at only our levels."

Forex: GBP/USD climbs 1.00% today to reach 1.6745 as 8-month high

GBP/USD has risen 100 pips in the last hour from 1.6640 to climb and post 1.6745 as fresh 8-month high. Cable has extended its recovery 1.6235 June 25 low and the pair has advanced around 500 pips in the last 3 trading days.

Currently ther pair is trading around 1.6725/35.

Rajoo C, analyst at Precise Trader, suggest the long way as the today's option: "GBPUSD held the level , moved higher we suggested and closed @ 16570 which was above the open. The Hourly Oscillators are bullish and price is above the MA, so the bears have to be Sidelined. Hourly Trend is Sideways Up and Daily Trend is also Sideways Up, so expect the price to make higher highs. We believe the price is just breaking out of the trading range and 16685 is the immediate barrier. The Patterns are on the 15min chart is giving a minimum price projection of 16730 or even 16900 before any significant move down while 16530 level holds. We prefer to be LONG while 16530 level holds or strictly trade at our levels."

Asian markets advances on commodities and oil; Dollar under pressure

Stocks in Asia are rising today's Tuesday session on commodities and oil higher, extending its record quaterly gains and Wall Street yesterday's gains. Oil prices climbed close to $73.00 a barrel as Nigeria's installations attacks and lower Dollar. Dollar is under pressure, losing ground against the rest of the majors.

Nikkei-225 Stock Average is climbing 2.00% so far today and the index is going toward the 10,000 pts level and MSCI Asia Pacific Index rises 1.2 percent. Wall Street posted gains yesterday, with Dow Jones rising 1.08%, consolidating above the 8,500 pts level, S&P 500 advanced 0.91% and Nasdaq post 0.32% increases.

Oil barrel is trading around $72.80 after climbing above $73.00 on Nigeria attacks on oil installations and Dollar helped push prices to eight-month highs.

EUR/USD has risen 0.25% so far today to post 3-week high, GBP/USD has climbing 1.00% today to reach 1.6733 as 8-month high.

USD/JPY has decreased 0.50% so far today to ease yesterday's gains and trade below 96.00, USD/CHF has fallen below 1.0800 to post intra-week low at 1.0778.

Forex Trading Techniques Step By Step

Decide What Type of Trader You Are

This is probably the most important step because your trading plans and strategies will be built based on who you are. Do you feel more comfortable when you watch every single movement in the markets as you trade? Or do you like to analyze the markets at the end of the day and then place your trades accordingly? Are you comfortable with leaving your positions open while you sleep? Do you prefer fundamental or technical analysis, or both? Everyone is different. You need to decide the trading style that best suits you.
What Is Your Risk Tolerance?

Currency trading involves high risk. So, you need to decide your comfort level with risks. If you are a very conservative trader, you probably want to avoid all major economic news announcement and releases. How much are you willing to lose in each trade? For example, if you only want to lose $100 in a trade in a $10,000 account, you are setting your risk to 1% per trade. Then you can adjust your trading size based on your risk tolerance and profit / loss targets. Some currencies are more volatile than others. If you are a more conservative trader, you probably want to make sure that you follow your money and risk management rules strictly before trading volatile currency pairs or in volatile market conditions.

What Are Your Market Preferences?

Since the Forex markets are running 24 hours a day, we can't possibly monitor and trade all of the markets at all times. So we have to choose the markets we want to trade in. Most of the traders would say that the Asian markets tend to be slow and quiet. The European and US markets are the most liquid markets. However, no matter what markets you prefer, they should work with your trading plan and strategies.

Develop Your Trading Plan

Your trading plan basically defines how you trade. It may look something like this:

Investment capital
Risk tolerance per trade as a percentage (1% to 2% preferred)
Currency pairs You are interested in (Start with 1 to 3 pairs first. Focus on their behaviors and patterns.)
Preferred analysis (e.g. MACD divergence, Support / Resistance break out...)
Win/Loss ratio (i.e., how you set up the profit taking and stop loss orders, such as 2:1, 1:1)

Create Your Own Trading Strategy

This is the details of your trading method. Before you buy or sell, this is the list of instructions and rules you follow each time, so you don't let your emotion make the decisions for you. For example,

Buy open when 5 ema > 10 ema, and KD above 30, and RSI above 50
Limit buy at 10 pips above the recent low
Set profit taking and stop loss ratio at 1:1. 100 pips away from the entry point. (e.g. Limit buy Euro at 1.3300. Win/Loss ratio 1:1. Take profit at 1.3400. Stop loss at 1.3200)
More stop loss to entry point when trade is 30 pips in profit. (e.g. Using the above example, limit buy Euro at 1.3300. When Euro is trading at 1.3330, move stop loss from 1.3200 to 1.3300.)

Practice Forex Trading without Risking a Dime

Now that you have a trading plan and a trading strategy, it's time to test it and see if it works. There are many Forex brokers out there. Try at least 3 of them. Test their platforms, execution, customer support and service. You can open demo accounts with the brokers of your choice, one at a time, to test your strategy. Most of them will allow you to trade in demo for a month. Some don't even have a time limit. If the strategy works, stick to it. If not, modify one rule at a time based on your observation and lessons learned. This is also the time to learn from the mistakes and fine tune your trading plan and strategy. Maybe you'll find that your strategy doesn't work in the US market, but it is working in the Asian market. Without risking a dime, this is a great way to find out if Forex trading is for you, and develop a successful trading strategy.

Ask Questions

There are many Forex forums out there. Share your experience and ask questions.

By: UbenDallas

Article Directory: http://www.articledashboard.com

My name is Carl. I am a currency trader for over 15 years. Simple Forex System Trading is my currency trading journal. For shopping tips or gift ideas, please visit Laiee.com. It is a shopping idea blog full of items I personally hand picked.

Three Major Benefits Of An Automated Forex System Software!

Forex system software offers three major benefits to a forex trader to make consistent profits in forex trading. The benefits will profit you in the long run of your forex trading. Find out what are the three major benefits of forex system software!

This is because that they might not have enough knowledge on trading or they might not being able to analyze the forex market correctly. In the olden days, the traders used to analyze the markets based on the trend charts, pivot points, moving averages, Elliot wave methods, Japanese Candle Stick Charting, etc. All the above mentioned methods are all mathematical methods (also called mathematical algorithms) which are used to analyze the forex markets.


Now, some special tools have been developed for the sake of analyzing the markets. Those tools have been developed by incorporating all the mathematical methods that are used to analyze the market, Such as the mathematical methods which I have mentioned earlier. Those tools have come up with different names such as automated forex system software or automated forex software system or forex trading system or forex trading software. In general many call them as forex software system or forex system software.

These forex software systems have been developed mainly for forex trading beginners. An experienced trader can utilize the forex system to its maximum level to make maximum profits. These systems offer many benefits to the traders. Taking advantage of the benefits that the forex software offers, even a forex beginner can make huge profits with ease.

Here are the three major benefits that forex software offers to the traders:

1. Saves a lot of time:

* Technical analysis: As I have mentioned earlier, in the olden days the traders used to analyze the forex market with various mathematical methods. Since the forex system software has been developed using various mathematical algorithms, they can analyze the market for you at its finger tips and provide you with buy and sell signals. Partially automated forex software systems (Like Forex Killer Software) just provide you with the buy and sell signal and you need to put the buy and sell orders to your forex broker. Where as the fully automated forex software system (Like FAP Turbo software) not only analyzes the market to get the buy and sell signals but it also automatically place the buy and sell orders to your forex broker. So the major advantage with forex system is that they provide you with buy and sell signals within minutes and saves a lot of time for you which in general you loose a lot of time in analyzing the market conditions.

2. Saves a lot of investment

* Provide enough training material: If you buy forex system software, they also provide you with the basic material for your forex training. Generally that material cost around $150. But they provide that training material along with the forex software when you buy it. Generally they provide you the training material in the form of documents and some informative videos. So you do not need to invest any more money for your forex training which will make you save at least $150.

* No need to spend any money on forex signal providers: Generally, many of the traders subscribe for the forex signals with forex signal providers. Generally, on a per month basis the forex signal providers will charge you around $100 or even more than that to provide signals. At the same time the forex signals they provide are not reliable. If you go for and automated forex system, they will provide you the forex signals and make the trades for you. As forex software is a one time purchase you will save a lot of investment in the long run.

3. Provides flexibility in trading:

* Works with all types of currencies and forex brokers: The forex software software will work on any type of the forex broker platform and can also work with ant type of currency with which you trade. This provides you the flexibility to trade forex with the forex software round the clock 24/7 with all the currencies. You can trade USD/EUR in the morning and with other currencies in the night which ever forex market that runs at that time.

* Trade forex even while you are in travel or even if you are not having internet connection: The forex system software provides you a special benefit to host the software on their servers. These servers are 99.99% of time guaranteed to work with power back. So you can simply plug-in the software on their servers and can start trading. This gives you a lot of flexibility that you can trade even while you are in travel.

The above three reasons are really strong enough to say that a trader needs to go for forex software system to make huge profits in the trading. I highly recommend and say that going for a forex software system will be a wise decision.

By: Venu Modalavalasa

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Venu Modalavalasa is a forex expert adviser since 1998. Check the reviews on some of the best automated forex software systems!